2024 Third Quarter Fertilizer Prices Across Ohio 

By: Clint Schroeder, Eric Richer, Amanda Bennett, OSU Extension

Click here for PDF version of the article

Results from a quarterly survey of retail fertilizer prices in the state of Ohio revealed fertilizer prices were slightly lower than the July national averages reported by Progressive Farmer for the second consecutive quarter – DTN (Quinn, 2024). The survey was completed by 17 retailers, representing 11 counties, who do business in the state of Ohio. Respondents were asked to quote spot prices as of the first day of the quarter (July 1st) based on sale type indicated. This is part of a larger study conducted by OSU Extension to better understand local fertilizer prices, which began in December 2023.

In summary, survey participants reported the average price of all fertilizers was lower in Ohio compared to the national prices, with Potash ($456/ton in Ohio versus $506/ton nationally) and 28% UAN ($309/ton in Ohio compared to $345/ton nationally) offering the largest discounts (Quinn, 2024).

The chart below (Table 1.) is the summary of the survey responses. The responses (n) are the number of survey responses for each product. The minimum and maximum values reflect the minimum and maximum values reported in the survey. The average is the simple average of all survey responses for each product rounded to the nearest dollar. We recognize that many factors influence a company’s spot price for fertilizer including but not limited to availability, geography, volume, cost of freight, competition, regulation, etc.

Table 1. Third Quarter 2024 Ohio Fertilizer Prices

Product Responses

(n)

Sale Type Min

$/ton

Max

$/ton

Avg

$/ton

Anhydrous ammonia 82-0-0 7 FOB Plant $625 $775 $702
UAN 28-0-0 14 Direct to Farm $258 $365 $309
Urea 46-0-0 11 FOB Plant $432 $565 $503
MAP 11-52-0 12 FOB Plant $737 $1136 $808
DAP18-46-0 6 FOB Plant $667 $790 $736
APP 10-34-0 8 Direct to Farm $550 $645 $599
Potash 0-0-60 14 FOB Plant $390 $515 $456
Ammonium Sulfate 21-0-0-24 11 FOB Plant $455 $581 $512
Ammonium Thio-Sulfate 12-0-0-26 9 FOB Plant $327 $430 $378

 

When compared to results from the previous quarter’s survey, prices for nitrogen products saw a modest decrease in price while phosphates were mixed with MAP increasing while DAP and 10-34-0 were lower. Potash prices decreased for the second consecutive quarter, coming in $34/ton lower than in the first quarterly report. Conversely, Sulfates were mixed with Ammonium Sulfate prices increasing again to $581/ton, which is $63/ton higher than at the beginning of 2024. Ammonium Thio-Sulfate price had a slight decrease of $7/ton. If you are a retailer interested in participating in this study, please contact Amanda Bennett at bennett.709@osu.edu.

Resources

Bennett, A., Richer, E., & Schroeder, C. (2024). 2024 First Quarter Fertilizer Prices Across Ohio. Ohio Ag Manager Blog. https://u.osu.edu/ohioagmanager/2024/01/17/first-quarter-2024-fertilizer-prices-across-ohio/

Bennett, A., Richer, E., & Schroeder, C. (2024). 2024 Second Quarter Fertilizer Prices Across Ohio. Ohio Ag Manager Blog. https://u.osu.edu/ohioagmanager/2024/04/15/2024-second-quarter-fertilizer-prices-across-ohio/

Quinn, R. 2024. DTN Retail Fertilizer Trends. DTN Progressive Farmer. Accessed online July 10, 2024 at https://www.dtnpf.com/agriculture/web/ag/crops/article/2024/07/10/anhydrous-urea-lead-retail-prices

Thinking of Grain Market from Field: Updated 2024 Planting Estimates and Market Outlook

By: Dr. Seungki Lee, Department of Agricultural, Environmental, and Development Economics,  The Ohio State University

Click here to access a PDF of this report

 

Highlights 

  • Despite relatively hot and dry conditions, new crop growth is plain sailing.
  • Corn acreage is estimated to be larger than expected.
  • US grain stocks for both corn and soybeans are the highest post-Covid.
  • Ohio on-farm soybean stock is 64% higher than in 2023.

Introduction

Summer is a busy season for grain producers, leaving little time to analyze the market and strategize sales plans. Nevertheless, the first week of July is a good time to take a “10,000-foot view” of the market, as the USDA releases several important reports by the end of June. In this article, we will discuss grain market outlook by reviewing the USDA new crop planting estimates, WASDE report, and grain stocks report.

National Crop Progress

In the short run, weather will be the key of the 2024/25 market fundamentals. So, let us begin with checking the national crop conditions. According to the USDA’s Weekly National Agricultural Summary, released on July 2, 11% of US corn had reached the silking stage by June 30 and 20% of US soybean had reached the blooming stage. These progress rates are about 5% ahead of their historical averages. USDA also noted that 67% of the nation’s corn and soybean acreages are rated in good to excellent condition, which is more than 15% above the previous year. Thus far, many regions are experiencing a relatively good growing season. However, the eastern Corn Belt region, including Ohio and Indiana, has recently observed increased dryness, which requires close monitoring of potential drought.

No Excitement in June WASDE

As we approach the end of the 23/24 market year, the USDA did not make significant changes in its June WASDE report, at least for corn and soybeans. There was no change in corn numbers and only a minor adjustment in soybean use, with a decrease of 10 million bushels in the 23/24 crush use. Overall, the June WASDE report was quieter compared to other months. In contrast, the USDA acreage report offered surprises to the market.

Corn Acreage Large than Expected

In the March Prospective Plantings report, the USDA projected a 5% decrease in corn acreage (90.0 mil. acres) and a 3% increase in soybean acreage (86.5 mil. acres) compared to 2023. These projections significantly influenced market expectations for price fundamentals over the past three months.

Table 1  June WASDE summary for corn and soybean

Corn Soybean
Marketing Year (Sep-Aug) 23/24 24/25 23/24 24/25
Area Planted (mil. acres) 94.6 91.5* 83.6 86.1*
Yield (bu/a) 177.3 181.0 50.6 52.0
Production 15,342 14,860 4,165 4,450
Total Supply 16,727 16,907 4,454 4,815
    Feed & Residual 5,700 5,750
    Ethanol 5,450 5,450
    Crush 2,290 2,425
Domestic Use 12,555 12,605 2,404 2,535
Exports 2,150 2,200 1,700 1,825
Total Use 14,705 14,805 4,104 4,360
Ending Stocks 2,022 2,102 350 455
Price ($/bu) 4.65 4.40 12.55 11.20

Note: Unless explicitly denoted, the default unit of all numbers is a million bushels. 24/25 Area Planted (asterisked) was updated based on the USDA Acreage report.

However, as shown in Figure 1, the corn acreage prediction was considerably revised on June 28, reporting only a 3% decrease from 2023 (91.5 mil. acres). This revision implies that approximately 271.5 million bushels of additional corn will be supplied in the fall, exceeding the market’s expectations from March. In contrast, soybean acreage was slightly adjusted down but still remains 3% above 2023 levels (86.1 million acres), which might be bullish but not significantly so.

The market seems to be slowly reflecting these estimates, as 3.36 million of the 91.5 million acres of corn were still “to be planted” when the USDA conducted the survey. Therefore, there is room for additional revisions. Regardless, my opinion is that corn fundamentals will likely remain weak for the next few months due to the unusually high stocks carried over from the 23/24 market year.

 High Stocks Will Keep Challenging Farmers

On June 28, the USDA released the Grain Stocks report, providing another benchmark for assessing the supply-demand balance. The third quarter grain stocks for both corn and soybeans were the highest among the post-COVID years (see Figure 2). The high corn stock resulted from the large harvest in 2023, while the high soybean stock was partly due to sluggish exports. The 5-year average for soybean exports is about 2 billion bushels, whereas only 1.7 billion bushels were exported in 23/24. Consequently, on-farm storage for corn and soybeans is reported to be 37% and 44% higher, respectively, than in 2023. In Ohio, on-farm stocks for corn and soybeans are 21.7% and 62.5% higher, respectively, than in 2023.

Given the high stocks that are straining storage capacity, if the new crop is harvested without any issues, many farmers could face a slide in cash prices. Therefore, a proactive risk-management marketing strategy will be essential.

Figure 1  Planted acreage update (updated on June 28, 2024)

Figure 2  Grain Stocks (updated on June 28, 2024)

 

 

Farm Office Live to be held on April 19 from 10:00 a.m. to 12:00 noon

This month’s webinar will feature the following topics:

  • CAT Tax – Closing Accounts
  • Taxation of Equipment Trade-ins
  • 2024 Crop Input Outlook
  • OSU Fertilizer Survey Q2 Release
  • Dairy Margin Coverage Program
  • Beginning Farmer Tax Credit Update
  • Transferring Operating Assets
  • Beneficial Ownership Reporting Update
  • Trends in Farm Appraisals

Featured presenters will include: Jason Hartschuh (OSU Field Specialist- Dairy Management and Precision Livestock), Clint Schroeder (Program Manager – Farm Business Analysis), Robert Moore (OSU Ag and Resource Law Program), Amanda Bennett (OSU Extension Educator), Barry Ward and Jeff Lewis (OSU Income Tax School Program), and David Marrison and Eric Richer  (OSU Field Specialists -Farm Management) and special guest Tim Harpster.

To register for this program (or to access replays of previous programs):

go.osu.edu/farmofficelive

OSU Extension Farm Office Live to be held on Friday, March 15 from 10:00 to 12:00 noon

This month’s webinar will feature the following topics:

  • 2nd Marriages and Transition Planning
  • Legislative Update
  • New Rule for Independent Contractors
  • 2024 Crop Input Outlook
  • Industry Panel on WASDE and Strategies for the 2024 Grain Marketing Plan
  • Hot Topics
  • Upcoming Programs

Featured presenters will include: Robert Moore and Peggy Hall (OSU Ag and Resource Law Program), Barry Ward and Jeff Lewis (OSU Income Tax School Program), and Bruce Clevenger  (OSU Field Specialist -Farm Management).

To register for this program (or to access replays of previous programs):

go.osu.edu/farmofficelive

Northeast Ohio Small Farm Financial to be held in Cortland, Ohio on March 9 and 16

By: Lee Beers, Extension Educator – Trumbull County

Small and beginning farmers in NE Ohio are encouraged to participate in the new in-depth farm management educational program! The college will consist of two Saturday courses to be held on the March 9 and March 16, 2024. Both days will run from 9:00 AM – 3:00 PM with lunch included. Both days will be held at the OSU Extension Trumbull County Office, located at 520 West Main St in Cortland, Ohio. This course will offer 10 hours of farm management education that will help start your farm on the path to financial success.

The college is designed to help landowners examine potential ways to increase profits on their small acreage properties. The program is open to all new or aspiring farmers, new rural landowners, small farmers, and farm families looking for new ideas. During this college, participants will be challenged to develop realistic expectations for their new farm business. They will receive information on getting started, identifying the strengths and weaknesses of their property, and developing a farm business plan. Information on farm finances, insurance, liability, labor, and marketing will be covered during the college.

The cost for the college is $100 per participant, with the option to bring an additional family/farm member for $50. This program also qualifies attendees for the Ohio Department of Agriculture’s Beginning Farmer Tax Credit Program. Those interested in receiving this credit would be subject to additional requirements and fees (More information is available later in this release and online). Those interested in registering for this college, please access: https://osu.az1.qualtrics.com/jfe/form/SV_4HqwjHUs1yJGQx8

More information about the college can be obtained by calling the Trumbull County Extension office at 330-638-6783

 

 

 

 

OSU Extension Launches New Food Business Central Online Course

By Emily Marrison, Assistant Professor and Extension Educator- Family & Consumer Sciences in Coshocton County

Are you a baker ready to sell your home-baked goods? Are you a farmer looking for value-added opportunities for crops you’ve grown or livestock you’ve raised? Are you an entrepreneur aiming to use local agricultural products to make value-added foods? The new Food Business Central online course through Ohio State University Extension can equip you with knowledge and strategies to launch a successful farm-raised or home-based food business in Ohio.

Navigating food regulations, establishing a new business, and applying best practices for food safety can be challenges for food entrepreneurs. “Many people interested in starting a food business aren’t sure where to turn first,” says Emily Marrison, OSU Extension Family and Consumer Sciences Educator and course development team member. “This course is designed to serve as a centralized hub to connect participants to information and resources regarding all types of food products they might want to make and sell.”

OSU Extension experts will help you develop a Food Business Action Plan and learn what you need to start off organized, safe, compliant, and strategic. The self-paced course focuses on several food types including cottage foods and baked goods, canned foods, meat, poultry, eggs, and more. Throughout the course participants will consider key questions and develop action steps to take on their journey to start a food business. As food entrepreneurs complete the course, they will have the answers they need to complete a business plan with help from their local Small Business Development Center. The cost of the course is $25, and registration is at go.osu.edu/foodbusinesscentral .

The development of the Food Business Central online course has been funded through a grant from North Central Extension Risk Management Education. This assistance comes from the United States Department of Agriculture through the National Institute of Food and Agriculture to develop resources that help farmers and ranchers effectively manage risk in their operations. Click here for informational flyer

OSU Extension Farm Office Live to be held on Friday, February 16 from 10:00 to 11:30 a.m.

OSU Extension and the Farm Office Team is pleased to be offering the “Farm Office Live” webinar on Friday, February 16, 2024 from 10:00 to 11:30 a.m.

This month’s webinar will feature the following topics:

  • Ag & Natural Resources State Update
  • Reporting for the Corporate Transparency Acy
  • 2024 Crop Input Outlook
  • OSU Extension’s New Food Business Central Course
  • Legislative Round-up
  • Spring Crop Insurance
  • Farm Bill Update – A Panel Discussion
  • Upcoming Programs

Featured presenters will include: Chris Zoller (OSU Extension Interim State ANR Leader), Robert Moore & Peggy Hall (OSU Ag and Resource Law Program), Barry Ward (OSU Income Tax School Director), David Marrison & Eric Richer (OSU Field Specialists -Farm Management), Emily Marrison (Assistant Professor and Family & Consumer Sciences Educator), Clint Schroeder (Program Manager – Ohio Farm Business Analysis Program) and Brandon Kern (Director of Public Affairs and Issues Analysis- Ohio Soybean Association)

To register for this program (or to access replays of previous programs):

go.osu.edu/farmofficelive

More information about this program can be accessed at farmoffice.osu.edu

OSU Extension to host Eastern – Ohio Small Farm Conference – April 6, 2024 at the Mid – East Career Technical Center Buffalo Campus, Senecaville, Ohio

By: Julie Wayman, Community Development Educator -OSU Extension Ashtabula County

Ohio State Extension announced plans to host a Small Farm Conference in Senecaville, Ohio on April 6, 2024. The theme for this year’s Mid-Ohio Small Farm Conference is “Sowing Seeds for Success.”

Click here to access 2024 Small Conference Brochure

Conference session topics are geared to beginning and small farm owners as well as to farms looking to diversify their operation. There will be five different conference tracks including: Horticulture and Produce Production, Business Management, Livestock, Natural Resources and new this year The Farm Kitchen.  Some conference topic highlights include: Raising Meat Rabbits, Making Goat Milk Soap, Timber Harvesting and Marketing, Basics of Growing PawPaw’s, Food Preservation Basics, Herb Vinegars, Organic Pest Management, Growing Produce with Hydroponics, Starting and Setting up a business, Solar and Wind Leasing.

Anyone interested in developing, growing or diversifying their small farm is invited to attend including market gardeners, farmers market vendors, and anyone interested in small farm living. Attendees will have the opportunity to browse a trade show featuring the newest and most innovative ideas and services for their farming operation. The conference provides an opportunity to talk with the vendors and network with others.

The Conference will take place from 8:30 a.m. – 3:30 p.m. at the Mid – East Career Technical Center – Buffalo Campus located at 57090 Vocational Road Senecaville, Ohio 43780

The registration fee for this all day conference is $100 per person. For conference and registration information call OSU Extension Morrow County 419-947-1070, or OSU Extension Knox County 740-397-0401.

Please follow this link to register for the conference: https://go.osu.edu/2024osusmallfarmconference

 

 

 

 

Commodity Marketing Strategies Workshop scheduled for February 28 in Wayne County

by John Yost, OSU Extension Educator- Wayne County

The Ohio State University Extension – Wayne County, will be hosting a one-day commodity marketing strategies workshop on February 28th for grain, beef cattle, and dairy producers.  Participants will learn: how to write a marketing plan, how to establish price targets, futures and option market pricing strategies, and the use of crop and livestock insurance products to protect against market declines.  The workshop is sponsored by Farm Credit of Mid-America, Gerber Feed Services, and Walnut Hill Feeds.  The program will be held from 8:00 AM to 3:00 PM at the Buckeye Agriculture Museum in Wooster, and costs $20 per participant.  For more information, please visit our website at wayne.osu.edu, or to register call 330-264-8722.

Click here for Commodity Marketing Strategies Program Flyer

Ohio Crop Production and Enterprise Benchmarking for 2022

By: PhD student Xiaoyi Fang and Professor Ani Katchova, Farm Income Enhancement Chair, in the Department of Agricultural, Environmental, and Development Economics (AEDE), and Clint Schroeder, Farm Business Analysis Program Manager, Ohio State University Extension.

Click here to access the pdf version of the report

The Ohio Farm Business Analysis and Benchmarking Program, conducted by the Ohio State University Extension, offers benchmark reports for Ohio farms, summarizing farm business management, particularly in crop production. These reports provide insights on 38 key measures from crop enterprise analysis, covering income, expenses, and efficiency measures. In 2022, the program included 36 corn enterprises and 31 soybean enterprises, allowing participants to compare their performance against similar Ohio enterprises. Benchmark reports are tailored to crop type (corn or soybeans) and land tenure (owned or cash rented). The data on physical production, gross returns, direct and overhead costs, and net returns per acre offers valuable insights to farmers.

Corn and Soybean Production for Owned Land and Cash Rented Land

In 2022, 16 Ohio corn producers with owned land, with an average of 127 acres per enterprise for corn production, had a yield of 191.96 bushels per acre and an average corn value of $5.98 per bushel. This resulted in an average gross return of $1155.89 per acre. For the 20 corn enterprises on cash rented land in Ohio, the average enterprise size was 195.87 with a yield of 188.78 bushels per acre and a corn value of $6.10 per bushel, leading to an average gross return of $1166.69 per acre.

In Ohio, 12 soybean enterprises on owned land operated at an average of 133.47 acres in 2022. They had a gross return of $704.13 per acre, with a yield of 51.43 bushels per acre and an average soybean value of $13.6 per bushel. The 19 soybean enterprises on cash rented land had an average operation size of 279.3 acres. These enterprises earned an average return of $769.33 per acre, with a yield of 55.08 bushels per acre and an average value of $13.79 per bushel.

Direct Expenses of Crop Production

For cash rent corn enterprises, the cost of production for corn was $5.43 per bushel in 2022, including labor and management charges. Direct expenses averaged $807.45 per acre, with around 60% allocated to land rent, seed, and fertilizer.

Likewise, for cash rent soybean enterprises, the cost of production for soybeans was $11.81 per bushel, also including labor and management charges. Direct expenses averaged $520.91 per acre, with around 30% allocated to land rent.

For enterprises with owned land, the cost of production for corn was $5.36 per bushel in 2022, including labor and management charges. Direct expenses averaged $712.29 per acre, with more than half allocated to seed and fertilizer.

Similarly, for soybean enterprises with owned land, the cost of production for soybeans was $11.77 per bushel, also including labor and management charges, with direct expenses averaging $366.74 per acre.

Enterprises with owned land typically incur lower overall production costs per bushel for both corn and soybeans compared to cash rent enterprises. Cash rent enterprises incur higher direct expenses per acre for both crops, primarily due to significant land rent costs. Notably, corn production tends to be less costly per bushel than soybean production for both enterprise types. Land rent is a crucial cost component for cash rent enterprises but is not a direct expense for owned land enterprises.

Government Payments for Crop Production

In 2022, government payments for corn producers on cash rented land averaged $4.09 per acre, while soybean producers received an average of $2.23 per acre.

Government payments for corn producers on owned land averaged $2.47 per acre. Conversely, due to the small sample size, government payments were not reported by the 12 soybean enterprises on owned land.

The Bottom Line of Crop Production

For Ohio’s owned land corn enterprises in 2022, net returns averaged $119.62 per acre, considering all direct, overhead and management expenses, as well as contributions from government payments. Notably, the net returns were lower than those observed in corn enterprises on cash rented land, where the net return over labor and management stood at $127.28 per acre. The net returns for soybeans on owned land were $94.26 per acre, which were lower than the net returns of $109.13 per acre for soybean enterprises on cash rented land.

References:

Schroeder C. and Shoemaker, H. ”2022 Ohio Farm Business Summary.” Ohio State University Extension, September 2023.